Multiple Choice
Which of the following is true about an increase in the U.S. government's budget deficit?
A) It will lead to global crowding out if U.S. interest rates fall below the level of interest rates in other countries.
B) It will cause outflows of foreign funds from the United States as foreign investors move their funds to other countries.
C) It will cause an inward shift in the aggregate demand for loanable funds curve.
D) None of these are correct.
Correct Answer:

Verified
Correct Answer:
Verified
Q8: According to the theory of rational expectations,
Q9: Economists who work at the Fed recognize
Q10: The intent of the Fed's strategy to
Q11: Global crowding out refers to the impact
Q12: The Fed needs the approval of the
Q14: To correct excessive inflation, the Fed could
Q15: The Fed is usually more willing to
Q16: A loose-money policy tends to _ economic
Q17: The _ indicators tend to rise or
Q18: The time between when the Fed adjusts